Sustainability - KUO - Annual Report 2024

Sustainability

Throughout our history, at KUO we have maintained a special focus on sustainability, from regulatory compliance and an emphasis on being good neighbors, to seeking to comply with international best practices. We are constantly working to stay at the forefront in this area.

In 2024, we carried out an update of the Materiality analysis with one objective in mind: to gain an in-depth understanding of the impacts that operations generate on society and the financial risks and opportunities related to sustainability. This process allowed us to identify and prioritize the most relevant aspects for our stakeholders and the sustainability of the organization.

The objective of Materiality is to keep our sustainability priorities up to date and visible and to continue developing good environmental, social and governance (ESG) practices. With these results, we have managed to strengthen our environmental and social responsibility initiatives and reaffirm our commitment to transparency and sustainability.

Additionally, during 2024, we updated our inventory of Greenhouse Gases (GHGs) emissions and carried out an assessment of risks and opportunities related to climate change, ensuring that our practices are aligned with international expectations and
regulations.

REFACCIONES

Materiality Analysis

GRI 3-1, 3-2

Double Materiality is a fundamental concept in the field of sustainability and corporate responsibility.

At KUO, embracing double Materiality has given us a more comprehensive and balanced view of the risks and opportunities for the Company. Integrating ESG considerations into our strategy and operations increases our resilience, enables us to innovate in products and services, and strengthens our competitiveness in the market.

By studying materiality, we were able to identify and prioritize the issues that are most relevant to KUO from two points of view:

1. From the actual and potential impacts we may have on our stakeholders (Impact Materiality).

2. From risks or opportunities that ESG issues may represent in our financial results (Financial Materiality). KUO’s Materiality Matrix is based on a total of 20 topics, classified into different categories according to their relevance and impact:

Methodology
To identify potentially relevant issues, we created a materiality matrix for each of our businesses. We carried out an exhaustive analysis of the main risks and opportunities in the sectors in which we operate. The issues were then prioritized by the main stakeholders through a consultation process, as well as by the company's management to ascertain the internal perspective on the issues evaluated.

Additionally, for financial materiality, we consider the recommendations offered by the sector standards of the Sustainability Accounting Standards Board (SASB), now part of the IFRS Foundation. By considering both perspectives, we can develop an integrated materiality matrix for each business.

For KUO, materiality analysis consisted of four steps:

1. Identification of potentially relevant issues through a context analysis by sector.
2. Assigning a weighting to each sector, depending on the percentage it represents of annual revenues.
3. Consideration of the weighted results of each materiality by business.
4. Creation of the “x” and “y” axes of KUO's materiality with the results obtained.

KUO's Materiality Matrix is based on a total of 20 topics, classified into different categories according to their relevance and impact:

Correspondence with SDGs

Each of our two material themes (impact and financial) has a relationship to the UN Sustainable Development Goals (SDGs); they correspond to the relationship we have at KUO with our environment and the contribution to the 2030 Agenda.

Sustainability Model

Our Sustainability Model is essential to guarantee our responsible and sustainable operation, generating long-term economic, social and environmental benefits.

KUO's Sustainability Model is a comprehensive structure designed to guide our efforts towards the creation of long-term value for all our stakeholders. Based on environmental, social and governance (ESG) principles, this model is designed to integrate best practices at the group level, as well as strategies specific to each business.

We structure our model around five fundamental cornerstones: Corporate Governance, Collaborator Development, Customer Satisfaction, Sustainable Products and Processes, and Operational Efficiency and Continuity. Each of these cornerstones includes lines of action and specific initiatives related to the Sustainable Development Goals (SDGs).

This model not only allows us to effectively address the risks and opportunities related to sustainability, but also fosters transparency, improves our reputation and contributes to our resilience and competitiveness in the market.

The Company relies on a representative to communicate sustainability-related issues to the Board of Directors, when necessary, ensuring effective accountability on ESG issues.

Moving forward, at KUO we are committed to strengthening and expanding our sustainability initiatives. We will continue to evaluate and adjust our model to ensure that it remains aligned with international best practices and the expectations of our stakeholders. Additionally, we will carry out an analysis of the Company's scorecard to ensure the implementation of this strategy, prioritize initiatives and coordinate actions in the different businesses of the group.